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DEPARTMENT OF MANAGE\1ENT

Governor

SERVICES
April18, 2013

CRAIG

J. NICHOLS

Secretary

Mr. Richard Barker, Jr. Pensacola Police Officers' Retirement Fund P.O. Box 12910 Pensacola, FL 32501

RE:

Pensacola Police Officers' Retirement Fund- Additional Information Request Review of 2009 and 2012 valuations & 2/25/2013 impact statement

Dear Mr. Barker: Additional information is needed to enable us to complete our review of the referenced documents. Please respond to the following, as applicable. Please provide justification for use of the 7. 75% assumed rate of return in the 2/25/2013 impact statement. Closing the pension plan shortens the investment horizon and will eventually limit the allocation of higher yielding risky assets. We feel the assumed rate of return should be lowered due to the closure of the pension plan. Also with respect to the impact statement, your actuary may wish to consider a change in funding method. The aggregate funding method is more appropriate for closed plans such as Pensacola Police Officers' Retirement Fund. NOTE: Section 112.63(4), F.S., states that if a satisfactory response to the foregoing requests is not received within a reasonable period of time, the Department of Management Services may notify the Departments of Revenue and Financ81 Services to withhold any funds payable to the plan sponsor (not pledged for the satisfaction of bond debt service), until the additional material information or corrections have been received by this office. Should you have any questions, please do not hesitate to call us. Sincerely,

1+~
Douglas E. Beckendorf, A.S.A., E.A. Actuary cc: Mr. Jarmon Welch, Plan Actuary Mr. Mike Stebbins, Plan Attorney Mr. Rodney T. Eagerton, Plan Chairman Mr. Shawn Dod<ery, Plan Secretary Ms. Patricia Shoemaker, Division of Retirement

Please direct all correspondence to: Division of Retirement Bureau of Local Retirement Systems PO Box 9000 Tallahassee, Florida 32315-9000 Toll Free: 877.738.5622/Tel: 850.488.2784/ Fax: 850.921.2161

www. frs.MyFiorida.com

Dick Barker Jr
From: Sent: To:
Beckendorf, Doug las <Doug las. Beckendorf@d ms. myflorida. com> Thursday, April18, 2013 8:16AM Dick Barker Jr penbrd@aol.com; mjstebbins@bellsouth.net; Rodney Eagerton; Shawn Dockery Pensacola Police Officers' Retirement Fund: Additional Information Request dated 04/18/2013 Mr. Richard Barker, Jr.-04-18-2013.pdf

Cc:
Subject: Attachments:

Attached is the additional information request for the Pensacola Police Officers' Retirement Fund. Call with any questions regarding this correspondence. Doug Beckendorf, A.S.A., E.A. Actuary, Bureau of Local Retirement Systems Florida Division of Retirement P.O. Box 9000 Tallahassee, FL 32315-9000 Phone: (850) 778-4605 Toll Free: (877) 738-5622 Fax: (850) 410-2172 Email: douglas.beckendorf@dms.myflorida.com
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